Federal spending hit six-year peak in first three months of fiscal year: PBO

The federal budget watchdog says Liberal government spending in the first three months of the fiscal year hit its highest mark in at least six years.

A report today by the Parliamentary Budget Officer says spending by the Trudeau government was 5.7 per cent — or almost $3.4 billion — higher in the first quarter of 2016-17, compared with the year before.

Jean-Denis Frechette says Ottawa’s first-quarter expenditures reached $62.9 billion — with much of the increase due to a 19-per-cent spending boost tied to infrastructure.

The Liberals have committed $11.9 billion towards infrastructure spending this fiscal year as a way to help lift the sluggish economy

The budget office also says the government’s operating spending increased 3.6 per cent in the first quarter compared to a year before, despite a decrease in employee costs.

The report says direct capital spending fell 10.5 per cent, largely due to lower procurement spending by National Defence as a result of project delays.